According to MacRumors, forum members have found that using the Reset All Settings option is permanently deleting documents from iCloud Drive. The option states that “No data or media will be deleted”, but it appears that some iOS 8 users are experiencing this problem.
MacRumors thinks the bug may be limited to iWork apps and not other documents stored on iCloud Drive. Yosemite users are seeing documents disappearing from their machines as well, with iCloud Drive synced between operating systems.
From one MacRumor forum member:
Because iOS 8 was so sluggish on my iPad 3 I reset all settings (No data or media will be deleted) and sped it up BUT deleted my iWork data! Then promptly synced and deleted it in iCloud.I have public beta of Yosemite so can’t roll back via time machine. I have no pre iOS 8 backups in iTunes or iCloud to revert to (well iCloud device backups don’t contain cloud documents and I should have iOS 7 backups in iTunes but can’t find any. iCloud has no trash like dropbox. They seem gone forever.
It’s not recommended that you reset any device running iOS 8 until this bug is addressed by Apple. Apple already had problems with iOS 8.0.1’s iPhone 6 cellular data bug and released 8.0.2 quickly after. Apple supplies Keynote, Numbers, and Pages for free to new device owners, and this bug could lead people to avoid Apple’s first party apps.
Source: MacRumors
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